What Are the Types of Employment Contracts?

man signing a type of employment contract

If you are looking at types of employment contracts for the first time, you could be confused by the numerous terms and conditions that cover employment. It’s easy to get lost and end up just reading the basic elements of a contract without really digging into what those elements mean to you. By breaking down the contract into manageable chunks, you can make sure you know exactly what you are signing.

The first thing you should understand about employment contracts is the three basic models you will find when taking on a job offer. Your proposal and counter offer, your notice period, and your definition of loyalty are all important parts of your contract. The model you choose will be affected by the type of business you are entering, the salary you expect, who you are entering, and whether or not you plan to go through formal court litigation.

For example, if you are a small business with only two to five permanent employees, your main types of employment contracts will be standard, non-permanent, and contractual. Your main model will be a standard employment agreement. This model states that your primary obligation is to provide a living wage and a safe working environment. It also lays out how much overtime pay you will receive and how many days off you will be able to take. This model is easy to understand and fairly standard, making it easy to form a contract with little litigation.

Temporary employment contract

Different types of employment contracts exist for different types of businesses. Most businesses that hire temporary employees have standard employment contracts. However, other types of businesses, such as restaurants or hotels, have different types of employment contracts. If you are hiring one person and two people on contract as waiters, you have a civil contract. If you are hiring two waiters, you have a contractual agreement. This makes these types of employment contracts easy to understand and to put together after you’ve decided what you want the agreement to contain.

However, there are some differences between these different types of employment contracts. For instance, a civil contract contains information that is not contained in a standard employment contract. Civil contracts typically set out the duties of the employer, their right to dismiss an employee, and their obligations to provide a living wage and an accident and health insurance policy. Civil contracts may also outline which employees are allowed to form a union and which employees are eligible for bonus increases. They may outline the amount of overtime pay that the employer will be able to impose, as well as the date by which they must achieve their bonus level. A good example of such employment is contingent workers.

woman signing a type of employment contract

Permanent employment contract

A permanent employment agreement is also known as a long-term or permanent employment contract. In this type, an employee is hired for a set period of time, with the employee potentially being hired for many years. The end date of the contract is determined at the time the employment agreement is signed, although this date can vary depending upon the nature of the industry and the location. An employee who signs a permanent contract usually has security into their salary for at least the duration of the contract, but may be eligible for a percentage increase at any time.

Casual employment

As was mentioned at the beginning, casual employment is becoming increasingly common, as employers try to save money by not providing benefits and appealing to employees by offering temporary contracts. Some types of casual employment include, but are not limited to, part-time work, freelance writing, data entry, and temp work. This article has briefly described the most common types of employment, and while these aren’t the only options available to you, they are among the more popular ones.

Written by a business lawyer

When a contract is written, it is usually drafted by a professional business lawyer. Business lawyers are particularly valuable because they are familiar with the language of contract law, which allows them to ensure that the information that is contained in the contract is consistent with the state and federal laws. In addition, business lawyers can help to negotiate the details of the employment contract, making sure that both the employee and the employer are satisfied with the outcome. A business lawyer can also make sure that any clauses that may be included are actually enforceable.